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RSM McGladrey annual survey shows participation by manufacturers and distributors in global activity enhances value and profitability84 percent of survey participants engaged in global business activities; additional findings indicate loss of U.S. jobs related more to U.S. economic conditions than offshore business activityMINNEAPOLIS (November 10, 2009) — According to RSM McGladrey’s 2009 Manufacturing and Wholesale Distribution (MWD) Survey, 84 percent of MWD industry leaders are engaged in global business activities and see significant benefits from strategic global business efforts. Conducted this past spring, RSM McGladrey’s 2009 MWD National Survey includes feedback from 923 leaders of MWD enterprises regarding their perspectives on the current state of their company and industry, and the strategies they are implementing to sustain profitability. Among respondents included in the final survey analysis, 84 percent reported they are engaged in global activities – defined as importing materials and supplies, exporting goods from the U.S., or conducting production activities or business operations outside of the U.S. The MWD Survey’s recently released “Global Business Report” provides a detailed summary of insights into the types of global activities respondent companies are engaged in and the impact on their business. “According to the U.S. Department of Commerce, U.S. exports contributed 13.1 percent to the U.S. Gross Domestic Product in 2008,” said Tom Murphy, executive vice president, manufacturing & wholesale distribution for RSM McGladrey. “To help ensure success, global business activity requires a deliberate and strategic approach. MWD National Survey results clearly indicate that participation in global activity contributes value and profitability. The extent of value added, however, is significantly greater for companies with defined global strategies, which report improved margins of 42 percent versus 20 percent for those who lack a more strategic approach.” MWD Survey results show that companies that export goods to China and India are more likely than others to report revenue growth from foreign markets than global businesses exporting to other countries. The analysis of the Survey’s global strategies section, also indicates that emerging markets for respondents’ goods include Central and South America. Analysis of the global strategies data from the MWD Survey suggests that the loss of U.S. jobs is more related to U.S. economic conditions than offshore business activity. The percent of companies moving offshore who plan to reduce their U.S. workforce is only 15 percentage points higher (59 percent versus 44 percent) than the percent of domestic-only companies planning U.S. workforce reductions. Additional data from the survey indicate that companies with global operations are 20 percent more likely than domestic-only companies to plan improvements in supply chain processes in 2009. Despite the inadequacy of IT systems, 16 percent of global companies will not invest in IT expansion in 2009, which might put them behind the competitive curve as the economy improves. For more information on the 2009 MWD Survey and Global Business Report, please download the RSM McGladrey 2009 Manufacturing and Wholesale Distribution National Survey Report, listen to the overview on YouTube, download the Global Business Report and/or visit the RSM McGladrey MWD blog. MWD National Survey Research Methodology About RSM McGladrey |